Business Plan for Grand Cafe in Chisinau, Moldova

This business plan outlines the objectives, strategies, and financial analysis for Grand Cafe, a coffee bar located in Chisinau, Moldova. The cafe aims to provide high-quality coffee and service to university students and nearby office workers, with a focus on building a loyal customer base. The plan includes details on the company ownership, start-up summary, products, sales and marketing, market analysis, and financial analysis.

Business plan 1
Student’s name:
University:

Business plan 2
Executive summary
The coffee bar is determined to be a daily need for the Local Coffee addicts, for Chisinau,
Republic of Moldova. This coffee bar is known as Grand Cafe. It is a place where one can
escape the daily stress of life and meet friends or relax and read the book, all at one place.
With the rising demand of high quality, coffee and high quality service, The Grand Cafe will
capitalise on the proximity to the Moldova State University Campus to create a group of
repeat clients. Grand Cafe will offer the clients with best prepared coffee in the region that
will be complemented with free books and pastries so that the visitors enjoy their visit.

Business plan 3
Executive summary.............................................................................................................................2
Introduction.........................................................................................................................................4
Objectives.........................................................................................................................................4
The keys to success..........................................................................................................................5
Mission.............................................................................................................................................5
Company Summary.............................................................................................................................5
Company ownership........................................................................................................................5
Start-up summary...........................................................................................................................6
Company location and facilities..........................................................................................................9
Products..........................................................................................................................................10
Sales and marketing......................................................................................................................10
Market Analysis Summary...............................................................................................................11
Market Segmentation....................................................................................................................11
Target Market Segment Strategy.................................................................................................12
Industrial analysis.............................................................................................................................12
Competition....................................................................................................................................12
Buying Pattern...............................................................................................................................13
Strategy and Implementation...........................................................................................................13
Generic strategic formulation.......................................................................................................13
Marketing goals.............................................................................................................................13
Formulating targeting strategies..................................................................................................14
Competitive Edge...........................................................................................................................14
Sales Strategy.................................................................................................................................14
Sales Forecast.....................................................................................................................................15
Tools and equipments....................................................................................................................16
Licensing........................................................................................................................................16
Employees......................................................................................................................................16
Management Team....................................................................................................................16
Financial Analysis..............................................................................................................................17
Breakeven analysis........................................................................................................................17
Conclusion..........................................................................................................................................18
References..........................................................................................................................................19

Business plan 4
Introduction
The business will operate at 2300 square foot coffee bar within a walking distance from the
Moldova State University. This location has been secured by the owner by 3 years of lease
and there is an alternative to extend as well. The needed start-up funds are of €170,000 out of
which €140,000 have already been provided. The balance capital will be taken as a
commercial loan from the local bank.
The cafe is anticipated to enhance the sales revenue from €584,000 in financial year 2018 to
€706,000 in the third year. Since Grand Cafe will strive to hold up a 65% of gross profit
margin and the appropriate operating expenses therefore it is expected to get net profits
expand from €100,000 to €125,000 in the same duration.
Source: own expectations
Objectives
Grand cafes objectives for the initial year of operations are:
- to be selected as the best new coffee bar in the region by the local cafe guide,
- to become profitable from the first month of operations (Ghandour, 2014),
- to uphold 65% of gross margin

Business plan 5
The keys to success
Grand Cafe the keys to success will be:
- the marketing strategies focusing on building a solid base of loyal clients along with
maximization of sales of high margin items like espresso (Cebano et al. 2018),
- training the staff members for ensuring the best coffee preparation methods,
- The store design that will be appealing to the clients and laid down for quick and
efficient operations.
Mission
Grand Cafe will put in the best efforts for creating a unique location where the clients can
socialize with one another in a relaxing environment along with the excellent brewed coffee
or espresso in town (Bridonneau, 2015). The customers will get help in relieving the daily
stress by getting Peace of mind by convenient site, great ambience, friendly customer service
and high quality of drinks. The investment of profits will be there for increasing the employee
satisfaction and generating constant returns for the shareholders.
Company Summary
The Grand Cafe will be a limited liability organisation selling coffee, snacks and other
beverages in the 2300 square feet premium coffee bar situated besides the Moldova State
University in Chisinau. The main investment will be done by XXXX and YYYY who
cumulatively will be owner of 70% of the company. The start-up loss of the organisation is
expected to be €27680.
Company ownership
Grand Cafe is registered as a limited liability Corporation in the state of Chisinau. xxx
possesses 51% of the company with his cousin YYYY and ZZZZ holding minority state in
The Grand Cafe LLC.

Business plan 6
Start-up summary
The start-up expenditures involve:
- Marketing and promotion expenditures for the grand opening of Grand Cafe with the
amount of €3500 and flyer printing for 0.04 €per copy with mm flyers for the entire
amount of €3580.
- The legal expenditure to get licensing and permits along with the accounting services
with the total of €1300.
- The consultant fee of €3000 given to LMN espresso services for assistance in
establishing the company.
- Insurance coverage has the total premium of €2400 with the property casualty
insurance, worker compensation insurance, and general liability.
- The restructuring of the premises will cost to around €10000,
- prepaid rent expenditure for one month is €1.76 per square feet with the total cost of
€4400
- the remaining start-up expenditures involving stationery of €500 and phone bills and
utility services of €2500
The required assets for the start-up will be of €142320 involving:
- start-up inventory amounting to €16027 which means
o the office supplies of €287,
o retail supplies of €1840 including napkin, coffee back, cleaning material etc,
o coffee filters, salads, sandwich, beverages, baked items and tea etc will be of
€7900,
o the main ingredient would be coffee beans with 12 variety of brands and 5
decaffeinated brands costing to €6000
- The equipments for the business will be of €59170 which will involve:

Business plan 7
o coffee grinder of €200,
o coffee maker of €900,
o espresso machinery of €6000,
o food service equipments such as Blender, refrigerator, toasters, microwave,
dishwashers etc. costing to €18000,
o counter area equipments such as sink, ice machine, countertop, etc of €9500,
o storage hardware such as food cases, shelves, utensil rack, and dustbins will be
of €3720.
o The serving area will need flatware, plate, glassware and that would be of
around €3000,
o office equipments involve furniture, phone, pc, file cabinets, fax or printing
machines for €3600
o the store equipments involve signage, security, ventilation, cash register
costing to €13750 and the other miscellaneous expenditure will be of €500.
The finances of the company will be from two key sources that is investment from the owners
and bank loans. The two owners named as XXX and YYY have given a contribution of
€70,000 and €30000 respectively. The remaining investors give a contribution of €40000 so
the total investment made is €140000. the balance of €30000 for covering the expenditures of
start-up and buying assets came from two loans from the bank that is a long run loan of
€20000 that would be for 5 years and loan of €10000 for 1 year. These loans had been
secured by the Procredit Bank. Therefore the entire start-up loss is expected to be of €27 680.
The given chart shows a summary of the junctions and Expectations of the start-up along
with the information details in the tabular format as below:

Business plan 8
START-UP REQUIREMENTS
Start-up Expenses
Legal €1,300
Remodeling €10,000
Insurance €2,400
Other €2,500
Consultants €3,000
Brochures €3,580
Rent €4,400
Stationery etc. €500
TOTAL START-UP EXPENSES €27,680
Start-up Assets
Other Current Assets €0
Start-up Inventory €16,027
Long-term Assets €59,170
Cash Required €67,123
TOTAL ASSETS €142,320
Total Requirements €170,000
START-UP FUNDING

Business plan 9
Start-up Assets to Fund €142,320
Start-up Expenses to Fund €27,680
TOTAL FUNDING REQUIRED €170,000
Assets
Additional Cash Raised €0
Cash Requirements from Start-up €67,123
Cash Balance on Starting Date €67,123
Non-cash Assets from Start-up €75,197
TOTAL ASSETS €142,320
Liabilities and Capital
Liabilities
Accounts Payable (Outstanding Bills) €0
Other Current Liabilities (interest-free) €0
Current Borrowing €10,000
Long-term Liabilities €20,000
TOTAL LIABILITIES €30,000
Capital
Planned Investment
XXXX €70,000
YYYY €30,000
Remaining investors €40,000
Additional Investment Requirement €0
TOTAL PLANNED INVESTMENT €140,000
Loss at Start-up (Start-up Expenses) (€27,680)
TOTAL CAPITAL €112,320
TOTAL CAPITAL AND
LIABILITIES
€142,320
Total Funding €170,000

Business plan 10
Company location and facilities
The Grand Cafe will be situated on the ground floor of the commercial building at Alexei
Mareevici St 60, Chisinau. The company has God the vacant premises of 2500 square feet for
one year only which was earlier occupied by a hair salon. The choice is given in the lease
contract for renewing for the next 3 years with the predetermined rate that will be executed as
per the financial strength of the Grand Cafe. The property is situated in the commercial block
within the walking distance from the university and therefore it connects the area with busy
downtown commercial places. There is necessary water and electricity hook up and a little
restructuring is required for accommodating kitchen, storage space and espresso bar. The
clean and open interior design of the coffee bar will have modern utility his conveying the
quality of soft beverages and items along with the right mix of relaxing space for people
(Miller, 2012). There will be clear window display by which the password by can see the
clients enjoying their drinks and the electric signal will be displayed outside the coffee bar
with the books so that the customers traffic can be gained. 200 square feet will be allocated to
the back office and 2300 square feet will be allocated to the coffee bar find the seating area
will be of 15 tables with two bathrooms, one kitchen and one Storage Area. Seating area will
acquire around 55% of the entire area that is of 1260 square feet. The production area will be
of 600 square feet with the 440 square feet allocated to customer service.
Products
- The best tasting coffee beverages in the area with high quality ingredients with the
strict adherence to preparation guidelines (Coulton, 2011).
- Brewed coffee, espresso drinks with a few refreshments and beverages
- Pastries, small salads and sandwiches can also be offered.
- Coffee beans sold for the gourmet customers who want to prepare coffee at home
- Free books and magazines which can be read inside the coffee bar.

Business plan 11
Sales and marketing
2000 flyers distributed in the neighbourhood, campus of the university, commercial area,
malls, and chosen office buildings. On this will be done two weeks before the starting of the
Grand Cafe. After this the free postcards with the endorsement of the Grand Cafe will be
printed for increasing the visibility of the cafe among the users.
Market Analysis Summary
There are around 50,000 individuals who reside in Chisinau area and 10% of them usually
come to the Moldova State University. The forecast has been made by the past tourism and
therefore we are targeting 200 visitors daily.
Market Segmentation
The Grand Cafe will focus its marketing practic3s on reaching the university faculty and
students, people working in the commercial buildings near the cafe and the segment of
teenagers. The market research shows that these customer groups are who are expected to
purchase gourmet coffee items. The consumers of gourmet coffee are global and in all
income groups depending on education levels, so the nearness to the campus will give access
to targeted clients.
The chart underneath displays total potential of market (in terms of clients) of gourmet coffee
drinkers in the chosen area:

Business plan 12

Business plan 13
MARKET ANALYSIS
YEAR I YEAR II YEAR III YEAR IV YEAR
V
Potential
Customers
Growth CAGR
Teenagers 1% €3,000 €3,030 €3,060 €3,091 €3,122 1.00%
Office workers 2% €8,000 €8,160 €8,323 €8,489 €8,659 2.00%
Students and
Faculty
2% €18,000 €18,360 €18,727 €19,102 €19,484 2.00%
Other 0% €5,000 €5,000 €5,000 €5,000 €5,000 0.00%
Total 1.63% €34,000 €34,550 €35,110 €35,682 €36,265 1.63%
Target Market Segment Strategy
The Grand Cafe will cater to individuals who wish to get their daily cup of great coffee with
relaxing atmosphere. The age differs even though the location is in proximity to the campus
of University therefore most of the customers will be the faculty and college students. A lot
of students feel that coffee shops are convenience place to read, relax, study, and meet people
without paying the cover charges (kirugumi, 2015). This will help in getting a loyal client
base for the company.
Industrial analysis
The coffee consumption has depicted a constant growth rate of 2.5 % in the past decade and
the retail coffee industry has been rising in the chosen area. The regional climate with long
rainy seasons is highly useful for consuming hot non alcoholic beverages and when there are
hot dry summers than people go to Café for drinking ice drinks (Quader, 2013). Coffee has
been important constituent of the lifestyle of people.
Competition
The main competitors for the business will be Bar Canete and Enigma. These are considered
to be the top competitors because they also offer that similar kind of surfaces. The

Business plan 14
competition is highly stiff and therefore the organisation will train the staff, market for higher
level keep a check on the quality of goods and services and use the modern technology so
that it can stay ahead in the competition and enhance the revenues. It is important to
understand the competitions that exist in the industry so that appropriate strategies can be
introduced.
Buying Pattern
The key cause for the customers to come back to a particular coffee bar is a great tasting
coffee, fast service and pleasing atmosphere (Kasnaeny K, 2013). Even though, as stated
earlier, coffee utilization is uniform all over different income segments, The Grand Cafe will
price its items offerings competitively. We strongly consider that selling coffee with a great
service in nice surroundings will assist in building a strong set up of loyal customers.
Strategy and Implementation
Generic strategic formulation
As per the Ansoff’s matrix there is growth strategy to be employed in this cafe/ cafe.
- Market penetration- The current market segment could be utilised with the existing
products and services so that market share can be expanded.
- Market development – As per the Ansoff's matrix, the growth and development will be
sort by targeting new market segment.
- Product development – The current market segments would be used for developing new
products (MONSHOUWER, VAN LAAR & VOLLEBERGH, 2011).
- Diversification- A new venture is expected to be used for diversification and adding new
products to the new market segments.
Marketing goals
The marketing goals will be dependent on:

Business plan 15
- Satisfying the customers and expanding business loyalty,
- generating traffic to the cafe (Müller, Mitchell & de Zwaan, 2015),
- Achieving the financial goals.
Formulating targeting strategies
The Grand Cafe’s marketing strategy will be focused at acquiring new customers, keeping
hold of the existing clients, making clients to spend further and come back quite frequently.
Setting up a loyal customer base is of a supreme significance because such customer core will
not only produce the majority of the sales but also will offer complimentary referrals.
Competitive Edge
The Grand Cafe will position itself as exceptional coffee bar where its customers can not only
take pleasure in a cup of flawlessly brewed coffee but also use their time in an ambient
atmosphere. relaxing sofas and chairs, soft light and quiet soothing music will assist the
clients to relax from the every day stresses and will set the Grand Cafe apart from current
competitors.
Sales Strategy
The Grand Cafe baristas will deal with the sales transactions. To accelerate the customer
service, minimum two workers will be servicing customers--while one worker will be busy in
preparation of the customer's order, the other worker will handle the sales transaction.
Afterwards, all the sales data recorded on the programmed.-of-sale terminal will be assessed
for marketing goals. For building up of client base, the Grand Cafe will utilize banners and
fliers, use client referrals and cross-promotions with other firms in the society. Also,
customer retention schemes will be applied to ensure the customers are returning and
spending more time at the coffee bar.

Business plan 16
Sales Forecast
Food costs are taken at 1/4th for coffee beverages and half for pastries and retail beans.
Closeness to the University campus will state some sales seasonality with revenues somewhat
declining for the duration of the school break periods. The chart and table underneath
delineate our projected sales predictions for the upcoming three years:
SALES FORECAST
YEAR 1 YEAR 2 YEAR 3
Sales
Coffee beans €87,600 €96,360 €105,996
Coffee beverages €350,400 €385,440 €423,984
Pastries, etc. €146,000 €160,600 €176,660
TOTAL SALES €584,000 €642,400 €706,640
Direct Cost of
Sales
Year 1 Year 2 Year 3
Coffee beans €43,800 €48,180 €52,998
Coffee beverages €87,600 €96,360 €105,996
Pastries, etc. €73,000 €80,300 €88,330
Subtotal Direct
Cost of Sales
€204,400 €224,840 €247,324

Business plan 17
Tools and equipments
For internal analysis the tools and equipments, supplies, value chain, licences, insurance,
performance assessment and staff assessment has to be carried out. The equipment and
supplies would be required for running the cafe smoothly. It is important that in a cafe there
are modern equipments, pots pans dishwasher, cookware, refrigerator, freezers. The cost
assessment for all these has been done in the previous section.
Licensing
The licences will be required for operations from local authorities of Moldova and therefore
health permit is needed which will require inspection of the place of work.
Employees
The staffs have to be properly trained and there has to be a location of a backup for IIT staff
members so that in case of any absence or attrition the operations of the cafe do not suffer.
For this the cross training will be provided to the staff members.
Management Team
A full-time manager will be recruited to manage the everyday operations at The Grand cafe.
The applicant chosen has had 4 years of managerial experience in the same industry in
Barcelona. This individual’s roles will comprise managing the personnel, placing order for
stock, handling suppliers, creating a marketing strategy and carry out other daily managerial
tasks. We consider that our candidate has the accurate experience for this position. A profit-
sharing agreement for the manager might be well thought-out as per the initial year
operational outcomes.

Business plan 18
Financial Analysis
Breakeven analysis
With average monthly fixed costs of €20300 in first year and an average margin of 65%, The
Grand Cafe's break-even sales quantity is approximately €31,300 per month. As revealed
below, the corporation is likely to produce such sales level from the beginning.
BREAK-EVEN ANALYSIS
Monthly Revenue Break-even €31,247
Assumptions:
Average Percent Variable Cost 35%
Estimated Monthly Fixed Cost €20,311
Conclusion
For setting up a
coffee shop, the business idea has been developed and a great research has been carried out
SALES FORECAST
MONTH 1 MONTH 2
Sales
Pastries, etc. 0% $10,000 $11,250
Coffee beans 0% $6,000 $6,750
Coffee beverages 0% $24,000 $27,000
TOTAL SALES $40,000 $45,000
Direct Cost of
Sales
Month 1 Month 2
Pastries, etc. $5,000 $5,625
Coffee beans $3,000 $3,375
Coffee beverages $6,000 $6,750
Subtotal Direct
Cost of Sales
$14,000 $15,750

Business plan 19
from different articles, journals and other secondary sources so that the business plan is
effective and beneficial. The business idea has been created with the identification of
potential market and segmentation so that this cafe unfavorably competes with the existing
players in the industry.

Business plan 20
References
Bridonneau, M. (2015). Le café d’Éthiopie et ses territoires : de la géographie au
commerce. Echogéo, (31).
Cebanu, S., Tutunaru, M., Deleu, R., Cazacu-Stratu, A., & Friptuleac, G. (2018). Promoting
and supporting physical activity and sport among young people in the Republic of
Moldova. Palestrica Of The Third Millennium - Civilization And Sport, 13(3), 158-
164.
COULTON, R. (2011). ‘The Darling of the Temple-Coffee-House Club’: Science, Sociability
and Satire in Early Eighteenth-Century London. Journal For Eighteenth-Century
Studies, 35(1), 43-65.
Ghandour, A. (2014). Identifying Dimensions of Business Continuity Plan from Common
Expressions among Business Continuity Professionals. International Journal Of
Business Administration, 5(3).
Kasnaeny K, K. (2013). Patronage Buying Motives of Coffee shop’s Consumers. IOSR
Journal Of Business And Management, 8(3), 19-22.
kirugumi, j. (2015). ROLE OF TOTAL QUALITY MANAGEMENT IN KENYAN
COFFEE HOUSE REVENUE GENERATION. Archives Of Business Research, 3(2).
Miller, M. (2012). Europe and the maritime world. Cambridge: Cambridge University Press.
MONSHOUWER, K., VAN LAAR, M., & VOLLEBERGH, W. (2011). Buying cannabis in
‘coffee shops’. Drug And Alcohol Review, 30(2), 148-156.
Müller, A., Mitchell, J., & de Zwaan, M. (2015). Compulsive buying. The American Journal

Business plan 21
On Addictions, 24(2), 132-137.
Quader, S. (2013). Drinking Coffee in Europe: A Demographic Analysis. SSRN Electronic
Journal.